The New York Giants' upset victory over the New England Patriots in the Super Bowl was supposed to be good news for the stock market. After all, Wall Street's Super Bowl Indicator holds that when one of the National Football League's original teams—such as the Giants—wins the championship, the Dow Jones industrial average will have an up year. However, a win by one of the league's later additions—like the Patriots—means the market is headed downward. Although it's clearly unscientific, the Super Bowl Indicator has correctly predicted the direction of the market 80 percent of the time. Go figure.
So while Sunday's outcome would appear to be a measure of much needed encouragement for jittery investors, it turns out that recent New York professional sports championships have occurred alongside some painful events for investors. Here's hoping there's nothing to this indicator.